Malayan Banking

Re: Malayan Banking

Postby winston » Fri Feb 14, 2020 3:35 pm

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CGS-CIMB cuts Maybank EPS forecast, target price

by Syafiqah Salim

KUALA LUMPUR (Feb 14): CGS-CIMB Securities Sdn Bhd said today it had lowered its Malayan Banking Bhd (Maybank) earnings per share (EPS) forecast by about 3.5% for the financial year ending Dec 31, 2020 (FY20) and FY21, to factor in two overnight policy rate (OPR) cuts of 25 basis points (bp) each in the first half of 2020.

CGS-CIMB analyst Winson Ng wrote in a note today the two OPR cuts by Bank Negara Malaysia (BNM) include the reduction on Jan 22, 2020 when BNM cut the OPR to 2.75% from 3%.

"The recent 25bp downward adjustments for Maybank’s lending and FD rates were in line with our expectations. Hence, we stick to our view that the OPR cut in January 2020 will lower its FY20F net profit by about 2% (on a full-year basis) as highlighted in our banking report dated Jan 22, 2020.

We estimate that the January 2020 OPR cut of 25bp will reduce Maybank’s FY20 net interest margin by about 3bp. Our economist anticipates another OPR cut of 25bp in 2020, which will have a similar full-year negative impact of c.2% on Maybank’s FY20F net profit.

"We retain our Hold call on Maybank (shares) as we are concerned about the potential hike in gross impaired loan and the negative impact from the OPR cuts. However, we think that its share price is supported by its attractive FY20F dividend yield of 6%," Ng said.

He said that following CGS-CIMB's Maybank EPS forecast cut, CGS-CIMB's target price for Maybank shares is reduced to RM8.54 from RM8.83.

At 11.14am, Maybank’s share price rose two sen or 0.24% to RM8.48 giving the group a market capitalisation of RM95.32 billion. Maybank saw 1.14 million shares traded.

Source: The Edge

https://www.theedgemarkets.com/article/ ... rget-price
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Re: Malayan Banking

Postby winston » Fri Feb 28, 2020 6:46 pm

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Positive surprise for FY19 DPS

Malayan Banking’s (Maybank) FY19 net profit was above our expectations, at 107% of our forecasts, due to lower-than-expected loan loss provisioning.

The total net DPS of 64 sen for FY19 (dividend payout of 87.8%) was significantly higher than our projected 49 sen (dividend payout of 71%).

Despite the attractive FY19 dividend yield of 6.1%, we retain our Hold call on Maybank due to the expected increase in credit costs in FY20F.

Source: CIMB

https://rfs.cgs-cimb.com/api/download?f ... 6A9579BE78
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Re: Malayan Banking

Postby winston » Fri Feb 28, 2020 9:24 pm

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Malayan Banking (MAY MK)
4Q19: Underpinned By Strong Trading Gains


4Q19 results were marginally above on the back of stronger-than-expected trading income gains.

Core revenue lines were weak on the back of modest loans growth, fee income and NIM slippage.

However, disciplined cost management allowed the group to still register positive operating JAW.

Maybank also declared higher cash dividends, but this is expected to normalise downwards in 2020.

Maintain HOLD and target price of RM9.20 (9.7 % ROE, 1.26x FY19 P/B).
Entry price: RM8.00.

Source: UOBKH

https://research.uobkayhian.com/content ... ad6dc87242
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Re: Malayan Banking

Postby winston » Sun Mar 01, 2020 8:40 am

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AmInvest Research retains Buy on Maybank, FV RM9.50

KUALA LUMPUR: AmInvestment Bank Research maintained its Buy call on Malayan Banking (Maybank) with a lower fair value of RM9.50 a share.

In its research note issued on Friday, it said the lower fair value was after it pegged the stock to a lower return on equity (ROE) of 10.0%, leading to a FY20 price-to-book value (P/BV) of 1.3 times.

AmInvest Research finetuned its FY20/21 earnings by 0.6%/-5.5% as it factored in another potential interest rate cut of 25bps in 1H 2020 and tweaked its NOII projection.

“Our earnings estimates have now taken into account a total OPR reduction of 50bps for FY20 which includes the OPR cut of 25bps on Jan 22,2020, ” it said.

Maybank group reported an improved net profit of RM2.5bil (+22.5% QoQ) in 4Q19 on the back of lower provisions.

The 12M19 earnings of RM8.2bil grew modestly by 1.0% YoY with a higher total income offset by rise in opex and provisions.

“Cumulative earnings were within expectations, making up 103.7% of our and 103.8% of consensus estimates respectively, ” AmInvest Research said.

Loan growth was tepid at 1.2%YoY as the expansion of Malaysia loans was offset by contractions of loans in Singapore and Indonesia.

“The group is cautious on corporate loans in Singapore and Indonesia due to the weaker asset quality in these international markets.

“Net interest margin (NIM) slipped 3bps QoQ to 2.29% due to lower asset yields. The group has continued to trim its excess liquidity in Indonesia with a contraction in FDs owing to the slowdown of loan growth in the country.

“Group GIL ratio improved slightly to 2.65% from 2.67% in the preceding quarter supported by reclassification of R&R loans to performing. FY19 credit cost rose of 0.44% was within our expectation and management guidance, ” it said.

AmInvest Research said the group’s capital ratios remained healthy with a CET1 ratio of 14.6%. • The group has proposed a final dividend of 39 sen share bringing total dividends to 64 sen/share (all cash dividends with no DRP option).

This translated to a highest dividend payout of 88.0% beating the research house’s expectation of a payment of 55 sen for FY19.

Source: The Star

https://www.thestar.com.my/business/bus ... k-fv-rm950
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Re: Malayan Banking

Postby winston » Sun Mar 01, 2020 8:46 am

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Collapse of Singapore commodity firm leaves lenders exposed

The amount held by Malayan Banking was $107.6 million, while ING and MUFG held $96.9 million and $77.3 million respectively.


Source: The Star

https://www.thestar.com.my/business/bus ... rs-exposed
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Re: Malayan Banking

Postby winston » Mon Mar 02, 2020 1:52 pm

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An exception, not a norm

FY19 above expectations from higher-than-expected non-interest income; 88% dividend payout was a positive surprise

Revenue mainly driven by non-interest income; margin erosion impacted net fund-based income

Trimmed FY20-21F earnings forecast by 2% after imputing a rate cut

Maintain HOLD with lower RM8.40 TP

Source: DBS

https://researchwise.dbsvresearch.com/R ... =fbjcgkiia
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